Res 2020-109/approving contracts with Hays Energy, LLC for the sale of reclaimed water for and the treatment of Wastewater from Hays Energy’s Electric Power Generation Facility South of the city

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Section 1.05. Billing. The City will furnish Hays Energy with an itemized monthly billing statement showing 1) the volume of Wastewater measured at the Transfer Point in 1,000 -gallon increments and the amounts due for Routine Treatment of the Wastewater at the then current applicable wastewater rate; and 2) the amount of any surcharge due under the City's industrial wastewater discharge regulations. Article 2. Obligations of HUs Ene= Section 2.01. Payments. A. Hays Energy will pay to the City at the then prevailing rate per 1,000 gallons for the Routine Treatment of the Wastewater, plus any applicable surcharges due under the City's industrial wastewater discharge regulations, at the City's billing offices in San Marcos, Texas, within twenty-five days after receipt of the itemized statement each month. This rate will change proportionally as changes are made by the City in the residential retail wastewater volume charge. B. Hays Energy will pay to the City the amounts of all federal, state, and local taxes, fees, and minimum monthly or other charges that may be applicable to the provision of wastewater treatment services under this Contract. C. Hays Energy will pay a minimum monthly charge of $500.00. Section 2.02. Operation of Wastewater Line. Hays Energy will dispose only of process wastewater from the Facility through the Wastewater Line, and the City will not permit any connections to be made to the Wastewater Line for the disposal of untreated wastewater without the written consent of Hays Energy. except as provided in Section 2.04. Section 2.03. Facility Operation. A. Hays Energy will operate the Facility so that routine discharges of the Wastewater are treated and disposed of through zero liquid discharge equipment at the Facility. Hays Energy will utilize all commercially reasonable efforts to construct, maintain and operate its zero -discharge equipment in fully functional condition at all times, and to discharge the Wastewater to the Wastewater Line only during periods in which Hays Energy's zero liquid discharge equipment is not operational. Hays Energy agrees to use all reasonable means to keep the duration of such periods to a minimum. When discharge of the Wastewater by Hays Energy to the Wastewater Line is necessary, Hays Energy will provide immediate notice to the City's wastewater treatment plant personnel, and will ensure that the Wastewater discharged at the Transfer Point meets the following parameters: Characteristic Parameter Volume Not more than 900,000 gallons per day Discharge Rate Not more than 625 gallons per minute Temperature Not more than 88° F B. The Wastewater discharged at the Transfer Point must meet all applicable requirements of the Laws and Regulations (as defined below) governing wastewater flows to the Treatment Plant. The parties anticipate that the Routine Treatment may not be sufficient for adequate treatment of the Wastewater, and Hays Energy agrees to have pretreatment facilities and processes in place to meet the City's industrial wastewater discharge regulations prior to initiating discharge of the Wastewater to the Wastewater Line. C. To ensure the City's compliance with its state wastewater discharge permit, protect river ecosystems, and comply with applicable stream standards, the City reserves the right to limit Hays Energy's discharge volume and rate, to require Hays Energy to schedule its discharges, and to require Hays Energy to temporarily cease its discharges, when the San Marcos River flows are at or below 100 CFS at the closest USGS gauging station above the City's wastewater discharge point on the river.